SBI Gold Fund – Gold Accumulation Facility

SBI Mutual Fund launched a gold accumulation facility fund that would allow investors to invest in the scheme based on a specific quantity of the fund house’s ETF unit.

Earlier Gold Fund provide SIP facility by value of  amount, it would now be additionally possible for investors to invest on the basis of quantity of gold (gms) via the same systematic investment plan and systematic transfer plan (STP) route.

Introduction of Gold Accumulation Facility

Investors will now be allowed to invest in the Scheme base on a specific quantity of SBI Gold ETF (SBI GETS) units. One unit of SBI GETS represents one gram of Gold. This facility will be available through SIP & STP (Systematic Transfer Plan). Base on the NAV of SBI GETS & number of units of SBI GETS as specified by investor, an amount will be calculated for each SIP/STP installment into SBI Gold Fund. This amount will be debited from Investors bank account (for SIP) or will be transferred for source Scheme (for STP) & will be invested into SBI Gold Fund at the applicable NAV of SBI Gold Fund on the Transaction day. This amount will vary for each installment.

Term Conditions for Gold Accumulation Facility

• Systematic Investment Plan (SIP)
  1. Frequency : Monthly & Quarterly
  2. Minimum Units : 1 unit of SBI GETS & in multiples thereof
  3. Max per SIP amount  : Rs. 1 Lakh
  4. Minimum No of Installment : 6 for monthly SIP & 4 for Quarterly SIP
  5. This facility will be available only through direct debit banks
  6. Installment amount will be calculated based on SBI GETS NAV, four business days prior to the due date. For example SIP due date is May 10, 2013, installment amount will be calculated based on SBI GETS NAV of May 06, 2013.
  7. SIP Dates :  5 – 10 – 15 – 20- 25 – 30
• Systematic Transfer Plan (STP)
  1. Target Scheme : SBI Gold Fund
  2. Source Scheme : All open ended schemes
  3. Frequency : Weekly, Monthly & Quarterly
  4. Minimum Units : 1 unit of SBI GETS and in multiples thereof
  5. Minimum No of Installment :  6 for Weekly & Monthly STP & 4 for Quarterly STP
  6. Installment amount will be calculated based on SBI GETS NAV, on the day of transaction.
  7. Weekly STP Date : 1 – 8 – 15 – 22 
  8. Exit load as applicable in the target/ source scheme